European stocks are poised to hit a new record high for the first time in over two years, propelled by a surge in the semiconductor sector following Nvidia’s impressive earnings report.
STOXX Europe 600 Index Climbs
The STOXX Europe 600 index XX:SXXP, which encompasses a wide range of prominent European stocks, rose by 1% to 495.81 during Thursday morning trading, inching closer to surpassing its previous record close of 494.35 achieved on January 5, 2022.
Nvidia Sparks Tech Sector Rally
Nvidia NVDA, -2.85%, a U.S.-based AI-chipmaker, exceeded earnings expectations, fueling a wave of buying activity in Europe’s tech industry. Companies such as BE Semiconductor Industries BESI, +15.84%, ASML ASML, -0.15%, STMicroelectronics STMPA, +3.62%, and Infineon Technologies IFX, +3.47% saw significant gains in response to the growing demand for AI-related products.
Record Performances and Industry Leaders
Germany’s DAX and France’s CAC 40 FR:PX1 have consistently achieved record levels, driven by strong performances from luxury goods giants like LVMH MC, +0.40% and Kering KER, +0.64%. Meanwhile, German automotive companies like Mercedes-Benz MBG, +4.97% boosted the market further by announcing dividend increases and buyback expansions.
Notable Stock Movements
Indivior INDV, +18.44%, a London-listed pharmaceutical company, surged by 20% after reporting a profit in the fourth quarter and contemplating relocating its primary listing to the U.S. by 2024. Rolls-Royce RR, +6.98% shares climbed to new heights after exceeding expectations in its financial results.
Market Challenges
On the contrary, Nestle NESN, -3.72% experienced a decline of over 4% following disappointing sales forecasts from the world’s largest food company.
